National insurance — Life in the UK Test practice questions
These practice questions cover National insurance, part of the The UK government, the law and your role chapter of the official handbook, Life in the United Kingdom: A Guide for New Residents. The correct answer and a clear explanation sit under every question.
Practice questions
When are young people in the UK sent a National Insurance number?
- At age 21
- Just after their 18th birthday
- ✓ Just before their 16th birthday — Correct answer
- When they retire
Young people in the UK are usually sent a letter with their National Insurance number just before their 16th birthday. The number is used to record tax and National Insurance contributions against their name.
What is a National Insurance number used for?
- To prove you can drive a car
- To replace your passport
- To choose your MP
- ✓ To record your National Insurance Contributions and tax properly — Correct answer
A National Insurance number is a unique personal account number. It helps make sure that your National Insurance Contributions and tax are recorded against your name.
Who must pay National Insurance Contributions?
- Only people over the retirement age
- ✓ Almost everybody in paid work, including self-employed people — Correct answer
- Only people who own a home
- Only people working for the government
Almost everybody in paid work must pay National Insurance Contributions, including self-employed people. Employees usually pay it through deductions from their pay, and self-employed people pay it themselves. Some people may not have to pay if they earn below the usual threshold.
What does a National Insurance number help record?
- ✓ Your National Insurance contributions and tax — Correct answer
- Your benefit payments and claims history
- Your passport applications and renewal dates
- Your school attendance records
A National Insurance number helps record your National Insurance contributions and tax. This is why it is the correct answer: it is used to keep track of these records for each person.